Prologis to Buy Out Brazilian JV Partner for $362M
- Jul 06, 2017
Prologis Inc. has entered into an agreement to acquire its partner’s interest in its Brazilian portfolio for R$1.2 billion (US$362 million), the company announced Tuesday. On the transaction’s closing, Prologis will own 100 percent of Prologis CCP and rename the business to Prologis Brazil.
Prologis CCP is a joint venture between Prologis and Cyrela Commercial Properties. It’s a leading provider of industrial real estate in Brazil’s primary markets and owns and operates about 8.8 million square feet.
The Brazilian portfolio comprises 20 properties and is on average 90.1 percent occupied, according to information provided to Commercial Property Executive by a Prologis spokesperson. Prologis declined to otherwise comment on the transaction.
Cyrela’s portfolio focuses on corporate buildings, shopping malls and logistics centers in the Rio de Janeiro–Sao Paulo area, as well as in other Brazilian state capitals.
The transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to close in the second half of this year.
A busy year for Prologis
As usual, Prologis has been busy with deals across the globe. In January, it announced that one of its funds would be acquiring a European JV between Prologis and Allianz Real Estate, for about $611 million. As part of the deal, Allianz boosted its stake in the merged fund, to the tune of about $208 million.
And in February, Prologis announced a new development venture in the United Kingdom, a partnership with CBRE Global Investment Partners. The venture is intended to invest at least $1.2 billion in develop-to-own logistics projects in the East and West Midlands, London and the South East.